Business | Markets

Emirates looks to new horizons

Emirates, the biggest Arab carrier, will watch the market response to the initial public offering (IPO) of DP World that closes next month before moving towards its own IPO, according to an official.

  • By Saifur Rahman, Business News Editor
  • Published: 10:11 October 29, 2007
  • Gulf News

  • Emirates' move comes close on the heels of DP World's announcement that it would list on Dubai International Financial Exchange (DIFX).
  • Image Credit: Supplied Picture

Dubai: Emirates, the biggest Arab carrier, will watch the market response to the initial public offering (IPO) of DP World that closes next month before moving towards its own IPO, according to an official.

"We will closely observe the market response to the DP World IPO before making our own decision," said a source close to Emirates.

"The value of Emirates could be anywhere around $25 billion (about Dh91 billion), based on its profitability and assets," he said. This puts the value of the airline at least 25 per cent higher than that of DP World - the world's third largest port operator.

Emirates Group posted a Dh3.09 billion net profit in its last financial year ending March 2007, on Dh29.83 billion revenues. It reported a cash flow of more than Dh11 billion on March 31.

"The airline does not need extra money. We have a healthy cash balance. So the IPO is not essential for us," the source said.

Shaikh Ahmad Bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group, was quoted by the The Times as saying, "I think for sure Emirates will also, in the future, do something like that," referring to the DP World IPO.

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